European Wax Center, Inc. Completes Refinancing Transaction


European Wax Center, Inc.

PLANO, Texas, April 06, 2022 (GLOBE NEWSWIRE) — European Wax Center, Inc. (NASDAQ: EWCZ) (together with its subsidiaries, the “Company”) announced today that it has completed its previously announced refinancing transaction . New series of securitized notes include $400 million of Series 2022-1 Class A-2 Fixed Rate Senior Secured Notes (the “Class A-2 Notes”) with an expected repayment term of five years and a fixed interest rate of 5.5% per annum, payable quarterly. In addition to the Class A-2 Notes, the Refinancing Transaction includes a $40 million Variable Funded Note Facility (the “Funded Variable Notes”). At closing, none of the Variable Funded Notes were drawn, but an undrawn letter of credit of approximately $5.6 million was issued under the Variable Funded Notes.

Net proceeds from the Class A-2 Notes after deducting transaction costs and initial issue discount were approximately $372 million. The net proceeds should be used, among other things:

  • repay all existing indebtedness under the senior secured credit facilities. As of December 25, 2021, the Company had an outstanding principal amount of term loans under its senior secured credit facilities of $180.0 million; and

  • to finance a one-time special dividend to shareholders.

The timing and amount of any dividend, including whether to be partially funded with available excess cash, remains subject to the determination of the Board of Directors of the Company.

As a result of the refinancing transaction, the Company expects to incur additional pre-tax interest expense of approximately $18 million in the second through fourth quarters of fiscal 2022. The Company is therefore updating its outlook adjusted net income for fiscal 2022 at $20 million to $24 million. from $35 million to $39 million.

This press release does not constitute an offer to sell or the solicitation of an offer to buy the Notes or any other security. The Offer Notes have not been and will not be registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act of 1933.

About the European Wax Center

European Wax Center, Inc. (NASDAQ:EWCZ) is the largest and fastest growing franchisor and operator of out-of-home waxing services in the United States, providing customers with a professional personal care experience delivered by highly trained wax specialists within the privacy of clean, individual waxing rooms. European Wax Center, Inc. continues to revolutionize the hair removal industry with its innovative Comfort Wax formulated with the highest quality ingredients to make hair removal a more effective and relatively painless experience. Offering a 360-degree customer experience, it also offers a collection of exclusive products to help improve and prolong hair removal results. Founded in 2004, European Wax Center, Inc. is headquartered in Plano, Texas. Its network includes 853 centers in 44 states as of December 25, 2021. For more information, including how to receive your first free wax, please visit:

Investor contacts:
Amir Yeganehjoo
[email protected]

Bethany Johns
[email protected]

Media Contact:
Creative Media Marketing
Meredith’s Needle
[email protected]

Forward-looking statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this press release include, but are not limited to, statements regarding the operating and financial prospects of the Company for the financial year 2022, the securitizations of the entire business, including the intended use of the proceeds thereof, and concerning the planned one-time special dividend to shareholders, which is subject to the decision of the Board as well as contractual and legal restrictions. Words such as “anticipate”, “believe”, “continue”, “could”, “estimate”, “expect”, “intend”, “may”, “could”, “plan” , “potential”, “predict”, “project”, “seek”, “should”, “will” or “would”, or, in each case, the negative form of these or other variations thereof ci or comparable terminology are intended to identify forward-looking statements.In addition, any statement or information that refers to expectations, beliefs, plans, projections, goals, performance, or other characterizations of events or future circumstances, including any underlying assumptions, is forward-looking.

These forward-looking statements are based on management’s current expectations and beliefs. These statements are not promises or guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause the actual results, performance or achievements of the Company to be materially different from the results, performance or achievements expressed or implied by forward-looking statements, including, but not limited to: potential future impacts of the COVID-19 pandemic, including variations thereof; the operating and financial results of its franchisees; the ability of its franchisees to enter new markets, select suitable sites for new centers or open new centers; the effectiveness of the Company’s marketing and advertising programs and the active participation of franchisees in enhancing the value of its brand; the failure of its franchisees to participate in and comply with its agreements, business model and policies; the ability of the Company and its franchisees to attract and retain customers; the effect of social media on the Company’s reputation; the Company’s ability to compete with other industry players and respond to market trends and changes in consumer preferences; the effect of the Company’s anticipated growth on its management, employees, information systems and internal controls; a major failure, disruption or security breach of the Company’s computer systems or information technology; the ability of the Company and its franchisees to attract, train and retain talented wax specialists and managers; changes in labor availability or cost; the Company’s ability to retain its franchisees and maintain the quality of existing franchisees; the inability of the Company’s franchisees to implement business development plans; the ability of the Company’s limited key suppliers, including international suppliers and distribution centers to deliver its products; changes in supply costs and decreases in supply revenue from the Company’s products; the Company’s ability to adequately protect its intellectual property; the impact of paying some of the company’s owners prior to the IPO for certain tax benefits it may be entitled to; changes in general economic and business conditions; the ability of the Company and its franchisees to comply with current and future health, employment and other governmental regulations; complaints or disputes that could harm the business and reputation of the Company; the seasonal nature of the Company’s business resulting in fluctuations in its results of operations; the impact of global crises, such as the COVID-19 pandemic, on the Company’s operations and financial performance; the impact of rising interest rates on the Company’s business; the Company’s access to sources of cash and capital to fund its ongoing operations and growth strategy and the planned one-time special dividend to shareholders and other important factors discussed under “Risk Factors” in the Statement of Company’s registration filed on Form S-1 filed with the Securities and Exchange Commission (the “SEC”), as such factors may be updated from time to time in its other filings with the SEC accessible at the SEC’s website at and in the Investor Relations section of the Company’s website. website at, including the company’s annual report on Form 10-K for the fiscal year ended December 25, 2021.

These and other important factors could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any forward-looking statements made by the Company in this press release speak only as of the date of this statement. Except as required by law, the Company undertakes no obligation to update or revise, or publicly announce any update or revision to, any of the forward-looking statements, whether as a result of new information, future events or otherwise.


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